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20 Nov 2025

International Economy

BI holds its interest rate at 4.75% to support the Rupiah (Business Brief No.4216 Full Ed.)

คะแนนเฉลี่ย
  • Bank Indonesia (BI) has maintained its policy rate at 4.75 percent for the second consecutive month to support the weakening Rupiah. Although the economy is recovering, the transmission of interest rates remains slow, and recovery in the private sector is still uneven. 
  • Future factors may support BI to ease its monetary policy, but the currency remains the primary constraint. Meanwhile, inflation is still within the target range. External stability and international reserves have improved. External debt has decreased. BI has measures in place to accelerate lending, which should help stimulate businesses. However, selling pressure from foreign investors continues to weaken the Rupiah and limits the room for near-term interest rate cuts. 
  • KResearch expects BI to keep the interest rate unchanged at its final meeting of 2025, with the possibility of a rate cut in 1Q26 if pressures from the currency and inflation subside sufficiently.

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International Economy